Interstate Power Amend AgreeMEMORANDUM
April 9, 2002
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Amendment to Development Agreement and Real Estate Contract
Between City and Interstate Power and Light Company
Economic Development Director Bill Baum is recommending an amendment to the
Development Agreement and Real Estate Contract between the City and Interstate
Power and Light Company, and that it be set for public hearing for May 6, 2002. The
amendment would provide for the substitution of Lot 6 for Lot 5 in the sale of property in
the Dubuque Industrial Center West. Additional compensation will be made to the City
for the slight increase in acreage between the two lots. Lot 5 will revert to the City and
can easily be combined with Lot 4 to create a 10+ acre development parcel.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Midhael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
William Baum, Economic Development Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
April 5, 2002
TO:
FROM:
SUBJECT:
Michael Van Milligen, City Manager
William Baum, Economic Development Director
Amendment to Development Agreement and Real Estate Contract
Between City and Interstate Power and Light Company.
INTRODUCTION
This memorandum presents for City Council consideration a resolution of intent to
dispose of City-owned property by amendment to the Development Agreement and
Real Estate Contract between the City and Interstate Power and Light Company. The
two amendments provide for the substitution of Lot 6 for Lot 5 in the sale of property in
the Dubuque Industrial Center West to the company. See attached map.
DISCUSSION
On November 19, 2001, the City Council approved a Development Agreement with
Interstate Power Company following a public hearing. The Agreement set out the terms
and conditions of the sale and development of land in the Dubuque Industrial Center
West. At the time of the Agreement, Lot 2, 3 and 5 were identified as the development
pamels. An operations facility was to be located on Lots 2 and 3 and a new substation
constructed on Lot 5.
Further design and discussion regarding the preferred substation location has resulted
in a request from the company to construct the substation on Lot 6. Lot 6 is directly
adjacent to the company's overhead utility poles running along the west side of Seippel
Road. Additional compensation will be made to the City for the slight increase in
acreage between the two lots. Lot 5 will revert to the City and can easily be combined
with Lot 4 to create a 10+ acre development parcel.
RECOMMENDATION
I recommend that the City Council approve the attached resolution setting a public
hearing on the disposition of Lot 6 of the Dubuque Industr'al Center West 2na Addition
for May 6, 2002.
Prepared by: Pamela Myhre
Economic Development Planner
Attachments
F:\USERS\Pm~hre\WPDOCS~LOANDOC~ALL~ANT~M EN D.mern.doc
LEGEND
FINAL PLAT
DUBUQUE INDUSTRIAL CENTER WEST 2ND ADDITION
IN THE CITY OF DUBUQUE, IOWA
\
'LOT 1-% SE1/4-NE1/4 X,
SEC,25-89-1E LOT 2-1
JOEL CALLAHAN 50' U
NOR'~ UNE SE~/4 ---{ LOT 6 ',
sec. 2S-8~-~E LOT 5 ~T~POR~R¥
10'.
LOT 4
-20' WiDE SANITARY
SEWER EASEMENT
LOT 7
-El/4 CORNER
SEC. 25-89-1E
FOUND PK NAI_
LINE SE1/4
LOT 8
'-r-O
LOT 3. o ,",'
LOT 2
~_ OF Ex~S~N~
*?~ANITARY SEWER
LOT C
DETAIL:
NO SCALE
"X" CUT
CONCRETE
LOT 1
575.79'(575.95')
LOT 2, SEIPPEL ROAD PLACE
DUBUQUE COUNTY
DETAIL: NO
· FOUND 5/8' iRON ROD W/
0 SET 5/8' IRON ROD
NORTH
GRAPHIC SCALE
0 200 400
1" ---- 200'
DRAWING MAY HAVE BEEN REDUCED
TOTAL AREA SURVEYED: 57.181 ACRES
SURVEYED FOR
& PROPRIETOR: CiTY OF DUBUQUE, IOWA
DATE SURVEYED: JANUARY 2 2001
r
RESOLUTION NO. 225-02
RESOLUTION OF INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY BY
AMENDMENT TO DEVELOPMENT AGREEMENT AND REAL ESTATE CONTRACT BETWEEN
THE CITY OF DUBUQUE, IOWA AND INTERSTATE POWER AND LIGHT COMPANY.
WHEREAS, the City OF Dubuque, Iowa (City) and Interstate Power and Light Company
(Developer) are parties to a Development Agreement dated as of November 19, 2001 with respect
to the purchase and construction of certain Minimum Improvements on the Development Property
described therein, which includes Lot 5 of Dubuque Industrial Center West 2nd Addition in the City of
Dubuque, iowa; and
WHEREAS, the Developer desires and the City agrees to substitute Lot 6 for Lot 5 Dubuque
Industrial Center West 2nd Addition in the City of Dubuque, Dubuque County, Iowa, as provided in
the Development Agreement pursuant to the Amendment to Development Agreement attached
hereto; and
WHEREAS, the City and the Developer are parties to a Real Estate Contract dated as of
December 21,2001, recorded as Instrument No. 384-02, Dubuque County, Iowa, with respect to the
purchase of the following described real property situated in Dubuque County, Iowa:
Lot 2, Lot 3 and Lot 5 of the Dubuque Industrial Center West 2nd Addition in the City
of Dubuque, Iowa; and
WHEREAS, the Developer desires and the City agrees to substitute Lot 6 for Lot 5 Dubuque
Industrial Center West 2nd Addition in the City of Dubuque, Dubuque County, Iowa, as provided in
the Real Estate Contract, pursuant to the Amendment to Real Esta.te Contract attached hereto.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the foregoing-described real
property by Real Estate Contract to Interstate Power and Light Company.
Section 2. The City Clerk is hereby authorized and directed to cause this Resolution and a
notice to be published as prescribed by iowa Code Section 364.7 of a public headng on the City's
intent to dispose of the foregoing-described Property, to be held on May 6, 2002 at 6:30 o'clock p.m. at
the Carnegie-Stout Public Library Auditorium, 360 W. 11th Street, Dubuque, Iowa.
Passed, approved and adopted this 15~ day of April, 2002.
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
F:\USERS~Pmyhre\WP DOCS~OANDOC~ALLIANT~I ntent to Dispose iPCl,doc
Prepared bv: W. Hargyaves lES Utilities, Inc. 200 First Street SE Cedar Rapids, lA 52406
AMENDMENT
TO
REAL ESTATE CONTRACT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
INTERSTATE POWER AND LIGHT COMPAaNY
f/k/a INTERSTATE PO;VER COMP.AaNY
DATED DECEMBER 27, 2001
319-398-4524
This Amendment to Real Estate Contract is made as of the .day of
April, 2002, by and between the City of Dubuque, Iowa, a mtmicipality ("City")
established pursuant to the Code of Iowa and the Stare of Iowa and acting under
authorization of Chapter 403 oft he Code of Iowa, as amended, and Interstate Power and
Light Company, an Iowa corporation, formerly known as Interstate Power Company
("Developer").
WHEREAS, the City and the Developer are parties to a Real Estate Contract
dated as of December 21, 2001, recorded as Instrument No. 384-02 - Dubuque
County, Iowa, with respect to the purchase of the following aescnt~ed real property
situated in Dubuque County, Iowa:
Lot 2, Lot 3 and Lot 5 of the Dubuque Industrial Center West 2ad
Addition in the City of Dubuque, Iowa
WHEREAS,'the Developer desires and the City agrees ro substitute Lot 6 for Lot
5 Dubuque Industrial Center West 2na Addition in the City of Dubuque, Dubuque
County, Iowa, as provided in the Real Estate Contract; and
WHEREAS, the Developer shall pay and the City shall accept payment for the
additional size of Lot 6 over the size of Lot 5 at the same dollar amount per acre as
agreed in the Real Estate Contract; and
WHEREAS, the difference in size between Lot 5 and Lot 6 is 1.022 acres and the
increase in price between Lot 5 and Lot 6 is $74,461.90.
NOW, THEREFORE, in consideration of the premises and the mutual obligations
of the parties thereto, each of them does hereby covenant and agree with the other as
follows:
The Real Estate Contract is herewith amended as follows:
The legal description is cha~ged to read: "Lot 2, Lot 3 and Lot 6 of the Dubuque
Industrial Center West 2nd Addition in the City of Dubuque, Iowa".
Paragraph 1. PRICE. is changed to read: "ONE MILLION TWO HUNDRED
EIGHTY-NiNE THOUSAND TWENTY-ONE DOLLARS AND 40/00
($1,289,021.40)";
The Balance Due is changed to read: "$1,269,021.40";
The second installment payment is changed to read: "$671,741.70 (ONE HALF
PLUS AN ADDITIONAL $74,461.90 FOR THE CHANGE FROM LOT 5 TO LOT 6)".
All other provisions of the original Real Estate Contract shall remain unchanged
and in full effect.
Dated: ~4~tZ- ~t/, ZOo'z..
INTERSTATE POWER AND LIGHT
COMPANY-Buyer
Dated:
CITY OF DUBUQUE, IOWA-Seller
CITY OF DUBUQUE, IOWA-Seller
STATE OF IOWA
COUNTY OF DUBUQUE ss:
q
dayof ,/C/or't/ ,2002, before me, the undersigned, a Notary
On this
Public in and for said State, personally appeared John O. Larsen, to me p~rsonally
known, who being by me duly sworn, did say that he is the Managing Director-Electrical
En~neering and Asset Managemcmt, Interstate Power and Light Company, ffk/a
Interstate Power Company, and that this Amendment to Real Estate Contract ~vas signed
on behalf of Interstate Power and Light Company by authority of the corporation and he
acknowledged the execution of the instrument to be the voluntary act and deed of the
corporation and by it voluntarily executed.
Notary Public, State of Iowa
STATE OF IOWA
COUNTY OF DUBUQUE
SS:
On this __day of _, 2002, before me, the undersigned, a Notary
Public in and for said State, personally appeared Terrance M. Duggan and Jeanne F.
Schneider, to me personally known, who being by me duly sworn, did say that they are
the Mayor and City Clerk, prospectively, of the City of Dubuque, Iowa; a municipal
corporation; that the seal affixed to the foregoing instrument is the corporate seal of the
corporation, and that the instrument was signed and sealed on behalf of the corporation
by authority of its City Council, as contained in Resolution No. passed by
the City Council on the ; and Terrance M. Duggan and
Jeanne F. Schneider acknowledged the execution of the instrument to be their voluntary
act and deed and the voluntary act and deed of the corporation and by it voluntarily
executed.
Notary Public, State of Iowa
AMENDMENT TO
DEVELOPMENT AGREEMENT
Tins Amendment to Developmcmt Agreement is made as of the day of
April, 2002, by and between the City of Dubuque, Iowa, a municipality ("City")
established pursuant to the Code of Iowa and the State of Iowa and acting under
authorization of Chapter 403 of the Code of Iowa, as amended, and Interstate Power and
Light Company, an Iowa corporation, formerly known as Interstate Power Company
("Developer").
WHEREAS, the City and the Developer are parties to a Development Agreement
dated as of November 19, 2001, with respect to the purchase and construction of certain
Minimum Improvements on the Development Property described therein; and
WHEREAS, the Developer desires and the City agrees to substitute Lot 6 for Lot
5 Dubuque Industrial Center West 2nd Addition in the City of Dubuque, Dubuque
County, Iowa, as provided in the Development Agreement; and
WHEREAS, the Developer shall pay and the City shall accept payment for the
additional size of Lot 6 over the size of Lot 5 at the same dollar amount per acre as
agreed in the Development Agreement; and
WHEREAS, the difference in size between Lot 5 and Lot 6 is 1.022 acres and the
increase in price between Lot 5 and Lot 6 is $74,461.90.
NOW, THEREFORE, in consideration of the premises and the mutual obligations
of the parties thereto, each of them does hereby covenant and agree with the other as
follows:
Introductory Paragraphs. The sixth (6th) introductory "WHEREAS"
paragraph is amended as follows: "Lots 2, 3, and 5" is changed to read, "Lots 2,3, and
Section 1. Paragraph 1.1 is amended as follows: "17 acres" is changed to read,
"18 acres".
Section 2. Paragraph 2.3. The last sentence is deleted and replaced with the
following sentence: "The construction of an electrical substation in Lot 6 shall be
commenced not later than December 31, 2002, and shall be substantially completed on or
before twenty-four (24) months after commencement of construction.."
IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed by their respective duly authorized officers or representatives, as of or on the
day first written above.
CITY OF DUBUQUE, IOWA
INTERSTATE POWER AND
LIGHT COMPANY
By:
Terrance M. Duggan
Mayor
John O. Larsen
Managing Director- Electrical
Engineering and Asset
Management